HSBC Swiss Private Bank to Sever Ties with 1,000 Middle Eastern Clients

HSBC's Swiss Private Bank is cutting 1,000 clients in the Middle East. The bank is focusing on high-net-worth clients and has implemented a new strategy to prioritize their business. The decision is part of a broader effort to restructure the bank's operations and focus on profitability. The bank has seen a decline in revenues and is seeking to reduce costs and improve efficiency.

HSBC's Swiss Private Bank has announced the termination of its relationships with more than 1,000 wealthy Middle Eastern clients, according to recent reports. This decision comes amidst heightened regulatory scrutiny over high-risk customers and is part of the bank's broader restructuring efforts to enhance profitability.

The bank, which has been facing regulatory issues, has been focusing on its strategic priorities. In a statement to Reuters, HSBC referred to plans announced in October last year to reshape the group, emphasizing that the culling of clients is part of evolving the strategic focus of its Swiss Private Bank [1].

The affected clients, many of whom have assets exceeding $100 million, are primarily from countries such as Saudi Arabia, Qatar, Lebanon, and Egypt. The bank has informed these clients that they will no longer be able to use its services and will be sending out letters advising them to move their accounts elsewhere in the coming months [1].

Barry O’Byrne, CEO of International Wealth and Premier Banking at HSBC, reaffirmed the bank's commitment to its Middle East and Swiss Wealth businesses, noting that Switzerland remains a key hub for supporting clients globally [1].

This move follows a 2024 finding by the Swiss financial watchdog FINMA, which found that the HSBC unit had breached its obligations in the prevention of money laundering involving politically exposed persons. The regulator identified suspicious transactions totaling $300 million between 2002 and 2015 [1].

HSBC has also been under investigation by law enforcement authorities in Switzerland and France for alleged money laundering offenses related to two historical banking relationships [1].

The bank's decision to terminate these high-risk client relationships is part of a broader strategy to reduce costs and improve efficiency, following a decline in revenues. This restructuring effort is aimed at focusing on more profitable segments of the business.

References:
[1] https://www.reuters.com/business/finance/hsbc-swiss-unit-culls-wealthy-middle-eastern-clients-amid-regulator-scrutiny-ft-2025-08-24/
[2] https://www.zawya.com/en/business/banking-and-insurance/hsbc-swiss-unit-culls-wealthy-middle-eastern-clients-amid-regulator-scrutiny-ft-says-lnycs00b